Leek announces successful consent bids for mortgage-backed floaters

By Toni Weeks

San Luis Obispo, Calif., Jan. 24 - Leek Finance said that the extraordinary resolutions for 28 series of mortgage-backed floating-rate notes were approved at meetings on Jan. 24, according to three separate press releases.

The meetings were previously adjourned on Jan. 3 for lack of quorums for the consent solicitations that began on Dec. 5 and were rescheduled for Jan. 24.

Leek Finance No. 17 plc's meetings were rescheduled to begin at 5 a.m. ET on Jan. 24 in London, with final voting deadlines on Jan. 22 beginning at 5 a.m. ET. Holders had to be of record as of 5 p.m. ET on Dec. 4. The company was seeking consents for the following outstanding notes:

• £270 million class A2a mortgage-backed floaters due 2037;

• $462 million class A2b mortgage-backed floaters due 2037;

• €365 million class A2c mortgage-backed floaters due 2037;

• €105.6 million class Mc mortgage-backed floaters due 2037;

• £22 million class Ba mortgage-backed floaters due 2037;

• €39.5 million class Bc mortgage-backed floaters due 2037; and

• €48 million class Cc mortgage-backed floaters due 2037.

Leek Finance No. 18 plc's meetings were rescheduled to begin at 6:20 a.m. ET on Jan. 24 in London, with final voting deadlines on Jan. 22 beginning at 6:20 a.m. ET. Holders were required to be of record as of 5 p.m. ET on Dec. 4. The company was seeking consents for the following outstanding notes:

• £171.1 million class A2A mortgage-backed floaters due 2038;

• $475 million class A2B mortgage-backed floaters due 2038;

• €128 million class A2C mortgage-backed floaters due 2038;

• $350 million class A2D mortgage-backed floaters due 2038;

• £12.5 million class MA mortgage-backed floaters due 2038;

• €83.7 million class MC mortgage-backed floaters due 2038;

• £25.9 million class BA mortgage-backed floaters due 2038;

• €26 million class BC mortgage-backed floaters due 2038;

• £6 million class CA mortgage-backed floaters due 2038; and

• €49 million class CC mortgage-backed floaters due 2038.

And finally, Leek Finance No. 19 plc's meetings were set to begin at 7:40 a.m. ET on Jan. 24 in London, with final voting deadlines on Jan. 22 beginning at 7:40 a.m. ET. Holders had to be of record as of 5 p.m. ET on Dec. 4. The company was seeking consents for the following outstanding notes:

• £110 million class A2A mortgage-backed floaters due 2038;

• $624.1 million class A2B mortgage-backed floaters due 2037;

• €124.5 million class A2C mortgage-backed floaters due 2038;

• £23 million class MA mortgage-backed floaters due 2038;

• €68 million class MC mortgage-backed floaters due 2038;

• £12 million class BA mortgage-backed floaters due 2038;

• €51 million class BC mortgage-backed floaters due 2038;

• £6 million class CA mortgage-backed floaters due 2038;

• €32.9 million class CC mortgage-backed floaters due 2038;

• £13 million class DA mortgage-backed floaters due 2038; and

• €6.7 million class DC mortgage-backed floaters due 2038.

The solicitation agents were J.P. Morgan Securities plc (attn: fixed-income syndicate, fax 44 0 20 7134 2468 or email ABS_London_Syndicate@jpmorgan.com) and Royal Bank of Scotland plc (attn: liability management group, 44 207 085 8806/9972, or email liabilitymanagement@rbs.com). The tabulation agent was Lucid Issuer Services Ltd. (attn.: Paul Kamminga/Victor Parzyiagla, 44 20 7704 0880, fax 44 20 7067 9098 or email leek@lucid-is.com). The principal paying agent was HSBC Bank plc (attn: senior manager, CT client services, corporate trust and loan agency).

Consent solicitation terms

As previously reported, Leek Finance and Silk Road began the consent solicitations Dec. 5 for series of mortgage-backed or asset-backed notes. The companies' proposed to amend the notes to add the following:

• Entry into back-up cash management and backup administration arrangements and changes related to the implementation of the backup arrangements;

• The amendment of an existing perfection event so that it will be triggered by the transfer of the servicing of the loans away from Platform Funding Ltd.;

• A change to the definition of authorized investments to allow for the issuer to invest in authorized investments that have a maturity date no later than the earlier of 100 days from the date the authorized investment is entered into and the interest payment date following the date of the investment;

• A change to the provisioning policy such that upon the occurrence of a perfection event relating to the portfolio, the provisioning shall be, as at each calculation date, the greater of (a) the amount provisioned for as at the calculation date immediately prior to the event and (b) an amount equal to 40% of the aggregate principal balance of loans, which are six months or more in arrears; and

• Amendments to the transaction documents in order to facilitate that the trustee must agree to any modification to the conditions of the notes, which are necessary for the issuer to comply with regulations.

Leek Finance said on Dec. 20 that it had amended the draft amendment documents to be considered at the meetings for the consent solicitations and that noteholders could obtain copies of the amended proposals from the principal paying agent.

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